The following data for Romero Products Inc. are available:

For the Year Ended December 31	Actual	Planned	Increase or (Decrease)
Sales	$8,360,000	$8,200,000	$160,000
Less:
Variable cost of goods sold	$3,496,000	$3,280,000	$216,000
Variable selling and administrative expenses	760,000	902,000	(142,000)
Total variable costs	$4,256,000	$4,182,000	$74,000
Contribution margin	$4,104,000	$4,018,000	$86,000
Number of units sold	38,000	41,000
Per unit:
Sales price	$220	$200
Variable cost of goods sold	92	80
Variable selling and administrative expenses	20	22

Labels

Effect of changes in sales

Effect of changes in selling and administrative expenses

Effect of changes in variable cost of goods sold

For the Year Ended December 31

Amount Descriptions

Sales quantity factor

Total effect of changes in sales

Unit cost factorUnit price factor

Variable cost quantity factor

Prepare an analysis of the sales quantity and unit price factors. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Romero Products Inc.

Contribution Margin AnalysisSales

1
2
3
4